IMPS is an instant money transfer service facilitated by NPCI (National Payment Corporation of India). The full form of IMPS is Immediate Payment Service which allows people to send and receive funds from savings accounts in real-time. The service facilitates inter-bank transactions through mobile banking and internet banking. The major reason behind using IMPS is that it is available 24×7, 365 days which makes it highly flexible and dependable.
Unlike bank branches that are closed on public and gazetted holidays, IMPS is always available. This means that you can be assured that the funds you have transferred reach the destination even on bank holidays.
Features of IMPS
Being a highly preferred medium of fund transfer in the country, IMPS is loaded with certain features. The features of IMPS are as follows:
- Flexible: IMPS is highly flexible in various aspects. Some of such aspects include:
- Availability: IMPS is available 24×7, 365 days. You do not have to go to the bank and wait in long queues to deposit or transfer money.
- Multi-Platform Support: Although IMPS is typically designed for mobile banking, it supports net banking.
- Versatile: IMPS is versatile as it can be used for several other purposes rather than just sending and receiving money. The payments can be classified as P2P and P2M payments. Both P2P and P2M modes can be used for making payments for online shopping, online merchant payments, insurance premium payment, OTC payments, fees payments to schools and colleges, utility bill payments, and travel and ticketing.
- Easy to Use: As compared to other modes of funds transfer, IMPS is quite easy to use. You would only require the mobile number (linked to the bank account) and the unique MMID of the receiver to transfer the money.
- Fast Money Transfer: As the name suggests, IMPS is an instant money transfer medium that facilitates funds transfer in real-time.
- A Secure Medium: Despite using the internet as a fund transfer medium, IMPS is one of the safest mediums of fund transfer. Bank servers are fairly protected through firewalls whereas the data traveling on the web is encrypted which is almost impossible to crack. However, there is no safety net for human errors.
- Mobile alerts: IMPS utilizes mobile banking to its full capacity. As soon as you transfer funds to the receiver, both sender and receiver receive text messages from the bank as alerts from the app.
IMPS Transaction Limit
The maximum transfer limit of funds through IMPS is Rs. 5 lakh. However, it may vary from bank to bank. while the minimum limit usually is Rs. 1. However, the limit may vary from bank to bank.
IMPS charges are largely subject to the amount which is being transferred along with the bank’s policies. However, the regular IMPS charges range from Rs. 2.50 to Rs. 25 for amounts of Rs. 10,000 to Rs. 5 lakh. IMPS charges for some prominent banks of the country are given here.
|ICICI Bank||Rs. 3.50 – Rs. 15.00|
|Punjab National Bank||Rs. 6.00 – Rs. 12.00|
|State Bank of India||No charges|
|HDFC Bank||Rs. 3.50 – Rs. 15.00|
|Kotak Mahindra Bank||No charges|
|Axis Bank||Rs. 2.50 – Rs. 10.00|
|Bank of Baroda||Rs. 2.50 – Rs. 25.00|
|AU Small Finance Bank||Rs. 10|
|Canara Bank||Rs. 5.00 – Rs. 18.00|
Note: The above-mentioned charges are exclusive of GST and are subject to change.
Why is IMPS Useful?
IMPS is, without a doubt, a convenient option to make fund transfers easily. There are several benefits of using this service such as:
- You can access IMPS 24×7, even on bank holidays.
- This service allows you to transfer funds anywhere and at any time.
- You can transfer up to Rs. 2 lakh each time instantly to the beneficiary of your choice.
- The SMS alert with each transaction allows you to keep track of the number of funds that you have transferred.
- IMPS charges are quite nominal.
Being a service integrated into mobile banking, IMPS requires a person to have savings bank accounts with mobile banking enabled. Even if you are transferring money through IMPS using the internet, you need to have the MMIDs of both parties. This makes it mandatory to have a functioning bank account.
Having said that, banks are also required to fulfil various eligibility criteria to facilitate IMPS. As per the RBI regulations, only the banks that offer mobile banking facilities approved by RBI can participate in this payment system.
How to Transfer Funds through IMPS
You can make IMPS transfers using internet banking, mobile banking facility, or using a Pre-Paid Payments instrument issuer (PPI). To carry out these transfer electronically, you will be required to follow the below-mentioned steps:
Step 1: Install the mobile banking application of the respective bank. For example – SBI Anywhere, iMobile Pay, etc. Alternatively, you can also transfer funds via IMPS using internet banking and following the same steps mentioned below.
Step 2: Log in using your credentials (User ID / Customer ID and Password)
Step 3: After successful login, click on “Transfer” and select add beneficiary or select One Time Transfer method.
Step 4: Transfer funds using IMPS by providing either MMID & mobile number details or account number & IFSC code.
Step 5: Enter the required details such as the name of the beneficiary, registered mobile number of the beneficiary, beneficiary MMID, and the amount to be transferred. Alternatively, you can also provide the account number and IFSC code instead of the registered mobile number and MMID.
Step 6: Click on ‘Accept Terms of Service (Terms & Conditions)’ and confirm the transaction.
How to track IMPS Transactions
IMPS reference number tracking is a simple way of knowing the details of your last transaction. You can log into your mobile banking account or net banking account to check the status of your IMPS transaction. IMPS Reference Number Tracking can be easily done by using the unique IMPS reference number which is provided by the bank after every successful IMPS transaction.
You may also have the option of calling your bank for any IMPS reference number tracking or to get details of your last transaction.
What is MMID
- To carry out an IMPS transaction, you will require a Mobile Money Identifier.
- It is a seven-digit number that is issued to customers upon registering for mobile banking.
- It is necessary for the remitter and the beneficiary to have an MMID to successfully carry out an IMPS transfer.
- Using the mobile number and the MMID allows you to transfer funds without any mistakes or issues.
- For every account of the customer, a unique MMID will be allocated. You can select the account for fund transfer using the MMID allocated.
- The combination of the MMID and the mobile number of the beneficiary allows you to make transfers without any errors. If either number is entered incorrectly, the funds are not transferred.
- MMID can be checked online by signing into your mobile banking app and choosing the “Know your MMID” option.
- You can send an SMS to the number provided by your bank for IMPS reference number tracking. You will be able to receive your MMID through an SMS.
IMPS Participating Banks
Below-mentioned public, private, and payment banks are active for the IMPS service:
|Bank of Baroda
|Bank of India
|Bank of Maharashtra
|Catholic Syrian Bank
|Central Bank of India
|City Union Bank||DBS|
|DCB Bank Ltd.
|Indian Overseas Bank
|Jammu and Kashmir Bank
|Karur Vysya Bank
|Kotak Mahindra Bank
|Punjab National Bank
|South Indian Bank
|Standard Chartered Bank
|State Bank of India
|Tamilnad Mercantile Bank Limited
|Union Bank of India
|YES Bank Ltd.
|RBL Bank||Punjab and Sind Bank
|City Union Bank
|Bandhan Bank||IDFC Bank
|Airtel Payments Bank Ltd.
|Fino Payments Bank
|Paytm Payments Bank
|India Post Payments Bank Limited
|Emirates NBD Bank (PJSC)
|JIO Payments Bank
|NSDL Payments Bank Ltd.
|Bank of America
|SBM Bank (INDIA) Limited.
|Bank of Bahrain and Kuwait B.S.C.
|Credit Agricole Corporate & Investment Bank
Benefits of IMPS
Instant money transfer services such as IMPS come with certain benefits as well. The benefits are:
- Accessibility: If you are carrying your mobile phone then you can use IMPS anytime and from anywhere.
- Always Available: Anytime availability is the biggest advantage. It comes in handy as they can transfer money even on bank holidays and public holidays and at any time of the day.
- Instant Fund Transfer: IMPS transfers money instantly to the beneficiary’s bank account. Even in the case of a technical issue, the money will be sent within an hour.
- Does not Require Confidential Details: These transaction performed through mobile banking does not require beneficiary’s the account number and IFS code. It only requires a mobile number and MMIDof the beneficiary. However, IMPS fund transfer through the internet requires the complete bank details of the beneficiary.
- Inexpensive: Except for UPI, no other fund transfer medium is as economic as IMPS. The charges for fund transfer go from a minimum of Rs. 2.50 to a maximum of Rs. 25. Though the charges for NEFT are similar it does not transfer funds in real-time, giving it a definite advantage.
Factors to Consider While Using IMPS
IMPS is one of the easiest and fastest modes of money transfer but a slight mistake can lead to loss of funds. Here is a list of a few factors to consider while transferring funds through IMPS.
- IMPS requires mobile banking for transferring funds. Even if you are transferring funds through IMPS using the web, you need to have the MMID of both parties and it cannot be generated without mobile banking.
- IMPS through net banking requires beneficiary information such as bank details, IFS code, mobile number of the receiver, name of the receiver, and MMID.
- Users must check the details twice before confirming the payment through UPI or IMPS. This is because the money transferred to the wrong bank account can only be returned with the consent of the beneficiary.
- In any case, it requires an internet connection either on a mobile phone or on your computer to transfer funds.
What does IMPS P2A Mean
IMPS P2A means that you can make a fund transfer from your phone to the accounts of any beneficiary by providing their account details. This is an option when you do not have access to the Mobile Money Identifier or MMID number. With IMPS P2A, you can transfer money by providing the beneficiary account number and the IFSC Code for the branch where the beneficiary account is held in.
What is the difference Between P2P and P2A
IMPS P2P means Phone to Phone transfer. The difference between P2A and P2P transactions lies in the beneficiary details that you provide when you make the transfer.
For a P2P transfer, you will require the MMID and mobile number of the beneficiary. The beneficiary will have to generate the MMID by downloading the banking app of his or her bank. For P2A, on the other hand, you do not require the MMID. All you need is the IFSC code and the account number of the beneficiary.
How to Make an IMPS P2A Transfer
A P2A transfer using IMPS can be made through your mobile banking account. IMPS P2A means that you only require the account number and IFSC code of the beneficiary account. You have to follow these steps to complete your transaction:
- Log into your mobile banking account using the password and username.
- Choose Funds Transfer and click on IMPS.
- Under IMPS, choose the “Using IFSC code” option.
- Then, you will be prompted to enter the beneficiary’s name and the amount you wish to transfer.
- Once all these details have been entered, you will have to provide your MPIN and click on confirm.
- When the transaction is complete, you will receive an IMPS transfer tracking number.
- When the funds have been credited, both the remitter as well as the beneficiary will receive an SMS alert.
History of IMPS
It is built on the current NFS (National Financial Switch) and is managed by NPCI (National Payments Corporation of India). IMPS started in August 2010 with a pilot from NPCI for mobile payment systems with 4 banks, viz. State Bank of India, Bank of India, Union Bank of India, and ICICI Bank. NPCI then expanded IMPS and included YES Bank, HDFC Bank, and Axis Bank later that year. On 22nd November 2010, IMPS was launched publicly.
It is more popular on mobile phones but it can also be used on desktops, laptops, and tablets. On mobile phones, you only have to generate a unique 7-digit MMID (Mobile Money Identifier). After that, you can avail of the service as per the mobile application of your bank.
Q. Does the customer need to have a bank account for availing IMPS?
Ans. Both the customers having a bank account and those not having a bank account can avail IMPS. However, customers who do not have a bank account can avail this service through Pre-Paid Payments instrument issuer (PPI).
Q. How can a customer not having a bank account can initiate IMPS?
Ans. Customers who do not have a bank account can initiate IMPS using the services of Pre-Paid Payments Issuer (PPI).
Q. Can I link more than one account to the same mobile number?
Ans. Yes, you can link more than one account to the same mobile number. However, each account will have a different MMID.
Q. Is the facility to stop payments available on IMPS?
Ans. No, you cannot stop or cancel IMPS payment once initiated since it is an immediate fund transfer facility.
Q. If I change my mobile number, will I have to register again for mobile banking?
Ans. Yes, you will have to update your new mobile number with your bank.
Q. Where can I register complaints related to IMPS?
Ans. You can register IMPS-related complaints with your respective bank.
Q. How many times can we use IMPS in a day?
Ans. IMPS services can be availed 24×7. There is no limit on the number of transactions carried out per day.
Q. Can we reverse an immediate payment?
Ans. Before releasing the payment, you have an opportunity to check the details of the payment. Once you have made the payment, it cannot be stopped or reversed.
Q. What happens if I transfer money to the wrong bank account?
Ans. In such a case, you need to inform your bank and ask your bank to take immediate action. If the account number mentioned by you doesn’t exist, the money will automatically be reverted to your account.
Q. What happens when an IMPS transaction fails or times out?
Ans. If you carry out an IMPS transaction and it fails or times out, you need to check if the money has been debited from your account. If not, you can initiate the transaction after waiting for a few minutes, however, if the money has been debited from your account, you need to check your account again after 2 working days. The money will have been credited to your account. If not, check with the beneficiary if he has received the money. If not, you can contact the customer care number of your bank for assistance.